Benchmarks continue to trade in negative zone in early noon deals

Indian bourses continued to trade in red zone with cut of over one third of a percent in early noon session. Sentiments got undermined with Finance Minister Nirmala Sitharaman’s statement that the ongoing trade wars and protectionism have generated uncertainties and will ultimately impact the flow of capital, goods and services.  However, broader indices were trading in positive with gains in the range of 0.50%-0.70%. Majority of the sectoral indices on BSE were into positive territory, stocks from Consumer Durables, Bankex, Healthcare, FMCG and Telecom counters were the prominent gainers. On the flip side, stocks from IT, TECK and Utilities counters were the prominent losers on the index.

On the global front, Asian markets were trading mostly in green, with positive comments from President Donald Trump and Chinese Vice Premier Liu He ignited optimism that the world's two biggest power nations might sign the first phase of a trade deal by the middle of November. Back on street, in scrip specific developments, shares of Tata Motors declined as Brexit divorce deal faced fresh blockade from the United Kingdom Parliament. However, HG Infra Engineering gained on getting LoA from Adani Road Transport worth Rs 950.79 crore.  

The BSE Sensex is currently trading at 39152.51, down by 145.87 points or 0.37% after trading in a range of 39121.21 and 39426.47. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.50%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.57%, Bankex up by 0.99%, Healthcare up by 0.98%, FMCG up by 0.92% and Telecom up by 0.92%, while IT down by 6.06%, TECK down by 5.08% and Utilities down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 7.39%, ICICI Bank up by 2.33%, Hero MotoCorp up by 2.18%, Axis Bank up by 1.54% and Bajaj Auto was up by 1.47%. On the flip side, Infosys down by 14.43%, Tata Motors - DVR down by 3.75%, Tata Motors down by 3.51%, HCL Technologies down by 2.03% and Tech Mahindra was down by 0.98% were the top losers.

Meanwhile, Federation of Automobile Dealers Associations (FADA) has said that passenger vehicle (PV) retail sales dropped by 20.1 percent to 1,57,972 units in September 2019 as compared with 1,97,653 units in the corresponding month last year, as the onset of festival season and never-seen-before discounts failed to boost demand. In the two-wheeler segment, the retail sales declined by 12.1 percent to 10,98,271 units in September as compared with 12,48,998 units in the year-ago period. Commercial vehicle sales dropped by 18.5 percent to 63,518 units against 77,980 units in September last year.

According to the FADA, three-wheeler sales saw a rise of 1.8 percent to 55,553 units in September 2019 from 54,560 units in the same period in the previous year. Total sales across categories declined by 12.9 percent to 13,75,314 units in September as against 15,79,191 units in the same month last year. It has stated that retail sales were under pressure during the month and the de-growth was on expected lines. It also said the continued heavy rains in various regions and the shraddh period also contributed to this sales lag. It added that the complete effect of the positive measures announced by the government was still not visible at the retail levels in the month of September.

Automobile dealers' body further stated that high inventory levels which started with festive season last year still continue to be a problematic area. While commercial vehicles showed slight reduction in inventory levels, it said passenger vehicle segment witnessed an increase as companies pushed in higher number of units anticipating higher sales during the festive season.

The CNX Nifty is currently trading at 11641.35, down by 20.50 points or 0.18% after trading in a range of 11631.50 and 11714.35. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 7.20%, Hero MotoCorp up by 2.27%, ICICI Bank up by 2.22%, Grasim Industries up by 1.84% and Titan Company was up by 1.65%. On the flip side, Infosys down by 14.61%, Tata Motors down by 3.62%, HCL Technologies down by 2.01%, Tech Mahindra down by 1.08% and Asian Paints was down by 0.78% were the top losers.

Asian markets trading mostly in green; Hang Seng increased 25.94 points or 0.1% to 26,751.62, Taiwan Weighted strengthened 87.10 points or 0.78% to 11,271.25, Straits Times advanced 26.39 points or 0.84% to 3,165.54 and KOSPI rose 21.40 points or 1.04% to 2,086.24. On the other hand, Shanghai Composite declined 5.23 points or 0.18% to 2,934.39 and Jakarta Composite was down by 17.51 points or 0.28% to 6,181.48.